ECONOMY

International Bank of Azerbaijan and EIB sign €50 mln loan agreement

The European Investment Bank (EIB) is lending EUR 50 million to the International Bank of Azerbaijan (IBA) to finance projects promoted by SMEs and midcaps in the country. The EU bank’s loan will support projects in the priority areas specified by the EIB external lending mandate, including the development of the local private sector.

This financing will enhance the access to finance for Azerbaijani SMEs and midcap companies, particularly in industry and services not related to the oil and gas industry, thus contributing to the diversification of the economy of Azerbaijan, and help the IBA to strengthen its position on the SME and midcap sector in the country.

The operation will support the Azerbaijani Government's strategy to diversify the economy and contribute to increasing the share of GDP generated by the SME sector while fostering sustainable private sector-led growth, which is also fully in line with the EU’s cooperation strategy with Azerbaijan. The EIB funds will contribute to job creation and raise the living standards of the citizens of Azerbaijan.

The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.